296. Letter From the Secretary of State’s Special Assistant for Mutual Security Affairs (Nolting) to the Director of the Foreign Operations Administration (Stassen)1
Dear Mr. Stassen: I refer to the letter of February 16, 1955, from the Secretary of Defense to the Secretary of State2 containing the views of the Joint Chiefs of Staff on force levels necessary to maintain the internal security of Laos, the maximum cost of such force levels, and a statement of the willingness of the Department of Defense, for political reasons, to provide civilian personnel for the supervision of United States military aid programs in Laos. A copy of this letter has been furnished the Foreign Operations Administration by the Department of State.
It is the established policy of the United States Government to give financial support where necessary to friendly nations in certain threatened areas to protect their territories from foreign aggression and internal subversion. The defense of Laos, by virtue of its geographic position, is highly important for the security of Southeast Asia and for the entire free world.
Current political and administrative problems faced by the Lao Government preclude the possibility of an immediate reorganization and concurrent reduction in force to conform to the concept set out in the letter of the Secretary of Defense. Therefore, it is requested that you provide financial support for maintenance of the Lao National Army at the current strength of 29,000. It is expected, however, that the Lao Government will reduce its forces as rapidly as possible to the 23,650 level deemed adequate for the maintenance of internal security. The Department of State has requested the American Minister at Vientiane to produce with the United States Army Attaché a joint recommendation on feasible target dates for this reduction and reorganization.
The American Minister at Vientiane is negotiating a bilateral agreement with the Lao Government on direct forces support, which will serve as the basis for financial aid to the Lao Government and permit forward planning on expenditure of military assistance funds. In negotiating this agreement, the American Minister has been instructed to inform the Lao Government that continued United States aid is contingent upon Lao Government acceptance of the force level [Page 655] and organization determined by United States representatives to be most effective for maintaining internal security in Laos.
With respect to supervision of American financial assistance, the United States is precluded from establishing a Military Assistance Advisory Group by the terms of the Geneva Agreement on the Cessation of Hostilities in Laos. Representatives of the Department of Defense, the Foreign Operations Administration, and the Department of State are now conferring on arrangements for the assignment of qualified civilian personnel to be attached to the Legation or the United States Operations Mission at Vientiane. Joint recommendations on staffing requirements for the supervision of American aid funds have been received from the Legation, the United States Army Attaché, and the United States Operations Mission, assisted by a two-member survey team detailed from the Military Assistance Advisory Group and the United States Operations Mission in Saigon.
It has been agreed that the Department of Defense will furnish civilian personnel to be responsible for the following:
- 1)
- Determining military end-item requirements.
- 2)
- Supervising end-item use by the Lao armed forces.
- 3)
- Controlling the delivery of military end-items.
- 4)
- Evaluating the adequacy of the development and effectiveness of the Lao armed forces.
- 5)
- Advising the Country Team on Lao force levels, bearing in mind the views of the Joint Chiefs of Staff.
- 6)
- Reviewing and making recommendations to the Country Team on the costs of maintaining the agreed force levels.
- 7)
- Assisting and advising the Country Team in screening Lao military expenditures.
- 8)
- In conjunction with the above-enumerated responsibilities, generally advising on military matters.
In accomplishing this mission, the supervisory personnel supplied by the Department of Defense will operate as an integral part of the Country Team.
It is hoped that, for its part, the Foreign Operations Administration will augment the Controller’s staff of the United States Operations Mission in Vientiane as required to discharge its responsibilities under Executive Order Number 10575 in the administration of Direct Forces Support and Defense Support programs.
The Department of State will arrange to provide the necessary additional administrative support, including housing, subject to the usual reimbursement for such services by the appropriate agencies.
The civilian military specialists furnished by the Department of Defense will assist the United States Operations Mission Controller personnel in a comprehensive study of the cost of supporting the 23,650 force level. The Country Team will review the aid programs for Laos, the American Minister and the Director of the United [Page 656] States Operations Mission giving due consideration to the absorptive capacity of this undeveloped country of 1.5 million people. Results of the careful cost analysis and realistic review may well call for downward revision of the $46 million figure tentatively allocated for the support of the Lao National Army, despite the necessity of retaining a 29,000 troop strength for several months during Calendar Year 1955.
This letter has the concurrence of the Office of the Secretary of Defense.
Sincerely yours,
- Source: Department of State, Central Files, 751J.5/2–1655. Secret. For drafting and clearance procedures of this letter, see supra. A marginal note by Murphy reads: “Concurred in by U &G subject to later review of amounts.”↩
- Document 275.↩
- Printed from a copy that bears this typed signature.↩